World food prices registered a 20.5% drop in March compared to the record set a year ago due to the effect of the war in Ukraine, but they are still “very high”, the FAO reported on Friday.
In relation to the previous month, the United Nations Food and Agriculture Organization (FAO) index, which measures a basket of basic products, fell 2.1% in March.
“The abundance of supply, weak demand for imports and the extent of the Grain Initiative of the Black Sea (the maritime corridor that allows exports from Ukraine) have contributed to this decline”, pointed out the FAO.
“Although prices have fallen globally, they remain very high and continue to rise in domestic markets, posing additional food safety concerns“, he claimed maximum bullfighterchief economist of the FAO.
The decrease in the prices of grains, of 5.6% with respect to the previous month, and of vegetable oils (-3%) offset the rise in sugar (+1.5%), which is in “its highest level since October 2016, due to fears linked to a drop in production projections in India, Thailand and China”, highlighted the organization.
The price of wheat fell 7%, “Driven by strong production in Australia, improving crop conditions in the European Union, supplies from Russia and continued exports from Ukraine.”
For their part, world prices for corn fell 4.6%, partly due to the “expectations of a record crop in Brazil” and the prices of the rice fell 3.2% for “harvests underway or imminent in major exporters such as India, Vietnam and Thailand”.
Source: Gestion
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